Amazon to shutdown US restaurant delivery service

Amazon Restaurants is shutting down in the United States and will cease operations on June 24 Amazon announced

Amazon Restaurants is shutting down in the United States and will cease operations on June 24 Amazon announced

More specifically, the days of Amazon Restaurants are over.

The service, called Amazon Restaurants, offered delivery in more than 20 cities in the U.S. It expanded into the United Kingdom, but Amazon shut down the service in that country late previous year. The service gave Prime members a way to get meals delivered to their door, using the Amazon Restaurants website or through the Prime Now shopping app.

The closure of the USA business, which was first reported by technology news site GeekWire, will happen on June 24th.

(The U.K. arm of Amazon Restaurants closed in November 2018.) According to the company, the few people from Amazon's 650,000-strong workforce who focused on the sites have either been moved to other parts of the company or will be assisted in finding other jobs.

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Deliveroo says the investment will allow it to develop its tech base and AI system, and launch its own kitchen spaces that can be rented out to food makers. But it was expanding the delivery service to new cities earlier this year.

Amazon is ending its restaurant delivery service, Amazon Restaurants, the company confirmed Tuesday, as the business of getting restaurant food to consumers' homes continues to consolidate and evolve.

As it is, restaurant companies are increasingly faced with the reality that delivery customers prefer their own services.

Amazon Restaurants was launched in 2015 in Seattle and was created to give Prime members a way to order meals, apart from products and groceries, through the online retailer.

The closure of Amazon Restaurants after investing serious time and money in the service is a rare retreat from the e-commerce behemoth.

Data from Restaurant Business sister company Technomic has found that two companies, DoorDash and Uber Eats, have accounted for much of the growth in the service over the past year, forming something of a "big three" in the business along with Grubhub. Those three companies combined hold more than 75 percent of the US food delivery market share.

Last month, it bought a stake in British food delivery company Deliveroo, whose kangaroo logo is a common sight on bicycles and scooters in Britain.

Grubhub, meanwhile, saw revenues reach $324 million for the first quarter, up 39 percent year-over-year, though its operating margin dipped by more than 10 percent, The Motley Fool noted.